Stock Forecast: Predicted Nvidia Share Price to Reach $200 by Given Date
A Look into the Potential $200 Milestone for Nvidia's Share Price
It's no secret that Nvidia, the renowned tech titan, is creating quite the buzz in the market. A sturdy bullish setup, according to analysts, could propel the company's share price towards an astonishing $200 – a figure that might seem far-fetched following a recent dip in shares.
Nvidia closed the last trading day at $135.13, marking a 3% dip for the day. However, despite this short-term setback, Nvidia's stock has managed to maintain a robust upward trend over the past month, notching up an impressive 24% growth.
This upward surge stems from a stellar Q1 2025 earnings report that surpassed expectations. The company posted adjusted earnings per share of $0.96, trumping the projected $0.93, and revenue of $44.06 billion, outstripping the anticipated $43.31 billion.
However, the tea leaves aren't entirely rosy. Nvidia's revenue guidance for the impending quarter came in around $8 billion lower than expected due to a U.S. export restriction on its H20 chips for China. This led to a $4.5 billion charge linked to excess inventory and $2.5 billion in lost sales, though the company projects approximately $45 billion in sales for the quarter, only marginally below analyst estimates.
Navigating the $200 Milestone
Despite these hurdles, some analysts – like TradingShot on TradingView – believe this temporary slide is just a breather in a broader bullish trend. On May 31, TradingShot pointed out a prominent bullish cup-and-handle pattern forming on Nvidia's chart.
This pattern typically stands for a period of consolidation and accumulation followed by a short-term dip, often triggering a powerful rally. At present, Nvidia is facing resistance at $143.60, a level that's been high since February 18 and triggered some recent profit-taking. However, solid support from the 50-day and 200-day moving averages is maintaining the bullish pattern's integrity.
TradingShot predicts a medium-term target of $200, based on a 2.0 Fibonacci extension, potentially by late September 2025. However, should the stock retreat beneath the 50-day moving average, the bullish outlook could weaken.
A Closer Look at Bearish Sentiments
However, it's not all sunshine and rainbows. A bearish divergence on the Relative Strength Index suggests slower momentum, despite higher highs, hinting at a possible short-term correction or consolidation, similar to a pattern observed in late October 2024, which was followed by a rally.
Meanwhile, Wall Street remains bullish on Nvidia's potential. Several firms have ramped up their price targets, attributing continued growth to the surge in AI and Chinese market concerns becoming less of a hindrance.
In summary, analysts are increasingly optimistic about Nvidia's share price reaching $200, citing various factors that could drive this growth. Meanwhile, challenges such as U.S. export restrictions on chips to China could pose potential short-term risks.
Investors looking to capitalize on Nvidia's growth may consider allocating funds in the stock-market, as some analysts like TradingShot predict a medium-term target of $200 for Nvidia's share price.
Even with bearish sentiments suggesting slower momentum, the robust upward trend over the past month and strong support from moving averages indicate that the stock-market might still navigate its way towards the $200 milestone, especially with continued growth in technology sectors such as AI.
